Adjusted EBITDA of $0.3 million , an improvement of $1.4 million over Q4 2015

Net loss of $0.1 million , an improvement of $1.3 million over Q4 2015

Order Backlog of $5.7 million , down 39% over Q3 2016

Cash of $11.1 million , or Cdn. $ 0.87 /share, up $0.5 million over Q3 2016

Financial highlights for the fiscal year ended December 31, 2016 include:

Revenues of $22.8 million , down 24% over 2015

Bookings of $21.6 million , down 32% over 2015

Gross margins of 55%, down 1 percentage point over 2015

Operating expenses of $17.3 million , down 7% over 2015

Adjusted EBITDA loss of $3.4 million , as compared to $0.5 million loss in 2015

Net loss of $4.8 million , as compared to a net loss of $1.8 million in 2015

Order Backlog of $5.7 million , down 68% over 2015

Cash of $11.1 million as of December 31, 2016 , down $3.4 million over 2015

Financial Review

Total revenue for the fourth quarter and year ended December 31, 2016 was $6.3 million and $22.8 million , respectively, with fourth quarter revenue up 23% over the same period in 2015 and annual revenue down 24% year over year. Revenue in the fourth quarter was up 21% over the prior quarter.

Adjusted EBITDA for the fourth quarter was $0.3 million , up $1.4 million over the Adjusted EBITDA loss of $1.1 million for the same period in 2015. The increase in the Adjusted EBITDA was a result of higher revenues and lower operating expenses compared to the same period in 2015. The adjusted EBITDA loss for the year ended December 31, 2016 was $3.4 million , an increased loss of $2.9 million over the same period in 2015, attributed to lower revenues.

"Redline ended 2016 on a stronger note with revenue growth quarter over quarter and over Q4 last year that included a resurgence of revenue from the energy sector," stated Robert Williams , Redline CEO. "This revenue growth combined with steady gross margins and reduced operating expenses has resulted in a positive EBITDA for the fourth quarter."

Order Bookings for the fourth quarter and year ended December 31, 2016 were $4.4 million and $21.6 million respectively, down 39% and 32% over the same periods in 2015. The decrease in Order Bookings year over year can be largely attributed to reduced spending from energy sector clients in the first three quarters of 2016 as a result of lower oil prices.

"We are seeing signs of renewal in our energy sector customer base and in the fourth quarter several existing and new customers placed orders for new networks," added Williams. "Market trials of our new LTE product are being well received and our cost reduction program continues as planned. We believe that our strategy of revenue diversification and ongoing cost management will continue to produce improved results going forward."

Overall gross margin for the fourth quarter and year ended December 31, 2016 was 56% and 55% respectively, up two percentage points and down one percentage point over the same periods in 2015.

Overall operating expenses for the fourth quarter and year ended December 31, 2016 were $3.6 million and $17.3 million , an improvement of 15% and 7% respectively over the same periods in 2015. The decrease in operating expenses in the fourth quarter was the result of the cost reduction initiative implemented during the quarter to reduce compensation costs and contractual costs. The decrease in operating expenses in 2016 was primarily a result of reduced compensation costs, offset in part by an increase in bad debt expenses and an increase in spending for trial deployments of the Company's new LTE product line.

Net Loss for the fourth quarter of 2016 was $0.1 million , or ($0.01) per share as compared to a Net Loss of $1.4 million , or ($0.08) per share in the fourth quarter of 2015. For the full year 2016, Redline reported a Net Loss of $4.8 million , or ($0.28) per share, as compared to a Net Loss of $1.8 million , or ($0.10) per share in 2015.

At December 31 st, 2016, Redline held cash of $11.1 million , up $0.5 million from September 30, 2016 , and down $3.4 million from the cash of approximately $14 .4 million at December 31, 2015 .

Conference Call and Webcast – March 7 th, 2017 at 10:00 a.m. ET

A conference call and webcast to discuss the results has been scheduled for Tuesday March 7, 2017 at 10:00 a.m. Eastern Time . To participate, please dial 1-647-427-7450 approximately 10 minutes before the conference call, and provide passcode 73966035. A recording of the call will be available through March 17, 2017 on Redline's website or by dialing 1-416-849-0833 and entering passcode 73966035.

About Redline CommunicationsRedline Communications (www.rdlcom.com) is the creator of powerful wide-area wireless networks for mission-critical applications in challenging locations. Redline networks are used by oil and gas companies to manage onshore and offshore assets, by militaries for secure battlefield communications, by municipalities to remotely monitor infrastructure, and by telecom service providers to deliver premium services. Hundreds of businesses worldwide rely on Redline to engineer, plan and deliver ruggedized, secure and reliable networks for their M2M, voice, data and video communications needs - in locations that include the deserts of the Middle East , the rainforests of South America , and the frozen Alaskan slopes. For more information visit www.rdlcom.com.

NOTES:

1

To better assess the health and growth of the Redline's business, the Company reports on several non-IFRS metrics, including "Orders or Bookings", "Shipped or Shipments", "Backlog", "EBITDA", "Adjusted EDITDA", and "EPS excluding non-cash gain (loss) on fair market value of financial instruments". Further information including definitions of these measures and a reconciliation to their closest IFRS measures, if applicable, can be found in the Company's Management Discussion and Analysis for the three and twelve months ended December 31, 2016 ("Q4 and 2016 Year MD&A"), copies of which are available on SEDAR at www.sedar.com. Further details on the three and twelve month results ended December 31, 2016 can be found in the condensed consolidated annual audited statement of financial position, condensed consolidated annual audited statement of comprehensive income, condensed consolidated annual audited statement of changes in equity and condensed consolidated annual audited statement of cash flows reproduced at the end of this press release. The selected financial information included in this release is qualified in its entirety by, and should be read together with the Condensed Consolidated Audited Financial Statements of the Company for the three and twelve months ended December 31, 2016 and the Q4 and 2016 Year MD&A.

Forward Looking StatementsCertain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking statements can be identified by terms such as "could", "expect", "may", "will", "anticipate", "believe", "intend", "estimate", "plan", "potential", "project" or other expressions concerning matters that are not historical facts. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management's current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.

Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Redline's performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline's suppliers and contract manufacturing agreements including the Company's reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline's efforts to expand internationally; a failure to protect Redline's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the "Risks").

For additional information on these Risks, see Redline's most recently filed Annual Information Form ("AIF") and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company's website at www.rdlcom.com. Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.